Secrets and Myths: 10 Ideas for How to Effectively Sell on Amazon
If you are thinking about joining the approximately 2 million sellers offering over 200 million products to shoppers in the United States on Amazon, then there are several things that you need to keep in mind.
Own the Buy Box
The Buy Box is the main buy display on each product page. Over 90 percent of all sales go to this entry. The first thing you need to do is to have a professional account. As a new seller, using this feature increases your odds of winning this box assuming that your products are buy box eligible. Additionally, make sure that your products are reasonably priced.
Ensure That You are on the Merchant Offers List
Owning the Buy Box can be very competitive, but you can still make money on this platform by being on the Merchant Offers List. As a new seller, choose products where there is not a lot of competition and make sure that your total price including shipping is very competitive. Address any negative reviews and customer complaints extremely efficiently.
Use Fulfillment by Amazon
As a new Amazon seller, let the retail giant fulfill your orders. One of the primary reasons that you will want to do this is to let them worry about shipping your products giving you more time to concentrate on customer service and other aspects of running your business. A second advantage is that your products become eligible for Prime.
Sell the Right Products
It is important to choose the right products to sell on this platform. Generally, products that are unique sell better along with those for a hobby or niche market. Finally, refurbished and used products often do very well because the company attracts a large demographic who are looking to save money even if it means they have to wait a little longer for their product. Make sure to avoid items that the company offers itself because you will never be able to compete against them on their products.
Associate Your Product with an Established Product
At first, you are not allowed to create your own product listing. Therefore, it is essential that you link your product with an established product on the platform. You can find your choices under the product links page in your affiliate account.
Consider Shipping Fees
If you opt out of the fulfillment program, then watch your shipping fees. The company calculates these fees for you. Unfortunately, they often calculate them too low. Be sure that your items weight and dimensions are correct. You may find that you need to add a little bit to your items price to cover the cost of shipping that you are not being refunded by the platform.
Get Customer Reviews
While you cannot seek out or buy reviews, you need to be winning them through great customer service. Satisfied customers are usually willing to take a few moments to leave you a review on their own. Owning your own e-commerce site and being active across multiple review sites can help increase the number of reviews that you can harvest.
Understand the Rules
As with any company, there are rules that you have to obey. Read these rules carefully before you start so that you do not accidentally break any of them. There are rules about what products can and cannot be sold, selling policies, shipping policies and a multitude of others. Know these rules well before you find yourself banned from doing business on the platform.
Don’t Forget to Collect Sales Tax
If you operate your business in a state that collects sales tax, then you are responsible for seeing that tax is paid. You may also owe employee taxes in your home or another state where you have employees. If you use Fulfillment by Amazon, then you may owe a tax based on where the fulfillment center is located. Therefore, it is best to check with a tax accountant before you start.
Keep Track of Your Inventory
If you have the right products at the right price, you can sell a lot very quickly on this platform. Therefore, it is essential that you keep track of your inventory very carefully. If you are making the product yourself, then think about what is needed to increase your production volume. The company will hit you with penalties, such as not winning the buy box, if your products are often out of stock.
Remembering these 10 things as a new Amazon seller will help you succeed on the platform. There is lots of money to be made if you have the right products, are linked to the correct products and offer outstanding customer service.